Are You Using RSI The Right Way ? Most Traders Don't !!!

🧠 Are You Using RSI the Right Way? Most Traders Don't!
When we talk about the RSI (Relative Strength Index), most traders only look at the traditional levels — overbought at 70 and oversold at 30. But that’s only scratching the surface.

💡 Here’s the real power of RSI:
✅ Bullish Bias Above 50
❌ Bearish Bias Below 50

Let me explain 👇

📊 Traditional Way (Often Misleading):
Most beginners buy when RSI is below 30 (thinking it’s oversold) and sell when RSI is above 70 (thinking it’s overbought).
But markets can stay oversold or overbought for a long time — leading to early entries or false signals.

⚡ Smarter Way — Focus on the RSI Mid-Level (50):
* When RSI is above 50, momentum favors the bulls — it’s better to look for long setups.


* When RSI is below 50, momentum favors the bears — better to focus on short opportunities.



This approach helps you stay in sync with the dominant market trend and improves your trading timing.

🎯 Tip: Use RSI 50-level as a trend filter for your strategy. Combine it with price action or moving averages for stronger entries.

📌 Try it out on your favorite stock, crypto, or forex pair and see the difference for yourself.


💬 Let me know in the comments: Were you using RSI the right way before this?

Disclaimer :
This post is not financial advice, it's for educational purposes only highlighting the power of indicators and tools available in TradingView.